On Thursday morning, the Czech currency fell to its weakest levels in two months against the euro and the dollar, losing tens of cents. Against the euro, it was above CZK 25 per euro, and against the dollar, it was above CZK 22.20.
The koruna seems to be reacting to information about the incursion of Russian soldiers into Ukraine. Against the euro, the Czech currency lost more than 40 cents against Wednesday’s close and more than 50 cents against the dollar.
Investors rank the koruna as a risky asset, and it traditionally weakens when there is uncertainty in the market. The last time the Czech currency was as weak as it is now was late last December.
Russian President Vladimir Putin announced this morning that he had permitted a special military operation in Ukraine’s Donbas region, agencies reported. Moscow cannot tolerate threats coming from Ukraine, and the operation will protect human lives.
Explosions have been heard in several Ukrainian cities, including Kyiv, Ukraine’s Unian news agency reported.